Past events

Social Protection networks are a set of public policies aimed to protect the population before social contingencies, which appear during life cycles. These networks have the potential to shield the social and economic welfare through money transfers, as social benefits which are subject to a specific social security regime and as focused or conditioned programs, additionally to in kind transfers or social services. As an example, before the current COVID19 pandemic, social protection networks materialized as programs directed to protect the incomes of households through emergency bonds, the expansion of health services coverage, the exemption of payments for social services, among others, have been decisive for the resilience of homes in the region. Latin America and the Caribbean are exposed to multiple threats of natural origin. In the last two decades, there have been registered 1,032 natural disasters, which have affected 155 million of people. Therefore, it is urgent to boost the resilience before natural phenomena in the region, due to its high levels of inequality and poverty, which are associated to higher vulnerability and exposition to threads. In this sense, it is essential to boost and consolidate social protection networks in the whole Latin America and Caribbean region, in addition to expand the social contingencies to the impacts caused by natural phenomena and climate change related events. For this, it is required to have institutions prepared to operate and respond to emergency situations and disasters, accordingly to social benefits and services offered by them. Social Security institutions are essential for social security networks, during disasters events. Sendai Framework 2015-2030, establishes as a priority to invest in disaster risk reduction for increasing resilience, which demands to promote the development of protection networks, tied to programs of livelihoods improvement. Today, social security coverage is limited in our region. As an example, almost half of the working population do not contribute to the retirement pension system; however, the coverage is extended by universal pension, health services, education, in kind and money transfer programs, directed to household on poverty and extreme poverty situations, pregnant women, children and people with disabilities; to wit, different mechanisms of protection networks complement each other, so the social security system needs to adapt in front of disaster risk. Therefore, the development of social protection networks entails the generation of technical and logistical capacities to secure, in theory, the timely and appropriate delivery of social benefits and services at any time. Social and economic resilience of the region depends, somehow, on the better preparedness of social institutions before disasters, based on continuity of operations, prioritization of substantial functions, and the execution of emerging programs to protect the affected population and in vulnerable situation.  

Corruption is a social, political and economic phenomenon that affects all countries of the world, a reality from which the Latin American and Caribbean (LAC) region does not escape. Its serious consequences affect the productive structure and the social and economic development of countries, as well as the stability of democratic institutions and the rule of law. In many LAC countries, corruption is seen as an inevitable consequence of the exercise of power. Causes of this endemic evil are varied, but institutional weakness, opacity in the management of resources by the public sector, and the apathy of the population to defend its interests stand out. In recent years, corruption has reached alarming levels and various forms of manifesting itself. Its modalities penetrate the public and private sectors in the form of bribery practices, fraud, illicit enrichment, influence peddling, diversion of resources, nepotism, even the use of privileged information for personal purposes, among others. In the case of the public sector, it manifests itself mainly in the areas of public procurement; public infrastructure; state-owned enterprises; customs administration; and public services, according to the World Bank (WB).[1]  The impacts of corruption are universally known, but when it involves State sectors, such as public procurement and infrastructure, its implications are more serious for low-income countries because of their impact on gross domestic product (GDP). Contracts without tenders, the absence of competitors, excessive cost overruns of time and money, little or no maintenance, unfinished monumental works, and the low quality of completed works end up adversely affecting economic growth, poverty alleviation, and private investment, in particular investment by multinational companies increasingly subject to international competition. The preferential treatment by the State also generates serious consequences. The management of funds for direct and indirect subsidies, debt repayments and tax exemptions and compensations are abused to meet non-commercial objectives, which can be diverted for personal or political benefit. Such is the case of bankrupt state-owned enterprises that often enjoy easy access to non-profit loans by state-owned banks to mitigate the damage caused. Corruption in customs is no different. A country's ability to benefit from the global economy is affected by delay in processing imports and exports. It also acts as a disincentive for foreign investors by increasing the costs of doing business and reducing the competitiveness of companies. No less important are the effects of corruption on the provision of services that should be guaranteed by the State. Public management and the administrative functioning of the State are eroded when the normal course of administrative procedures for obtaining a public service is altered due to a bribe.  The complexity of this scourge demands integrated responses. The international community has made efforts in this regard by first adopting the Inter-American Convention against Corruption (1996), the first international legal instrument in this field that recognizes the international importance of corruption and the need to promote and facilitate cooperation among States. Subsequently, the United Nations Convention against Corruption (2003), a legally binding international anti-corruption instrument, was adopted. However, the edges of corruption are so diverse that these tools have not been sufficient to achieve a lasting solution. More than stepping up international cooperation is needed to successfully implement the main areas of such an instrument, namely prevention of corruption, penalty and law enforcement, international cooperation and asset recovery. Beyond identifying the best practices of some countries that contribute to the design of global strategies and the institutional strengthening of the capacity to respond to this problem by improving the role and effectiveness of anti-corruption agencies, tax and audit administrations and justice systems, governments are obliged to implement public policies that attack the root of the problem and its devastating effects on the productive structure and on the society. Governments face many challenges in addressing corruption, such as identifying what instruments usually work and why. It is not only a matter of having solid institutions and creating legal frameworks aimed at prosecuting and penalizing those who misuse public resources, but also of achieving greater public transparency, better government management, citizen participation and social inclusion. Of equal importance is to provide governments with technological tools that enable them to promote reforms that lay the foundations for government management in a spirit of transparency, integrity, inclusion and collaboration. The global digitization of governments and citizens must be deepened to change the face of public sector governance and its effects on the fight against corruption. Access to information and better collaboration between the State and society are key tools for achieving this purpose. The lack of information on the budget and the administrative management of public resources prevents social control of activities and results of governments, thus facilitating the conditions for corruption. In this context, the economic and social development of Latin America and the Caribbean requires strategies that promote citizen participation and their active collaboration in the formulation of specific public policies that meet their needs. The progress made in these areas will depend on the tools adopted. Strengthening the institutional capacity and the rule of law in the region are fundamental elements in the fight against impunity for acts of corruption. Promoting the adoption of technology and innovation for monitoring public resources, as well as increasing the resource mobilization of international financial institutions can make a difference in this regard. The use of information and communication technologies are also monitoring tools that strengthen the notion of transparency and accountability by promoting administrative simplification, which reduces opportunities for corruption by avoiding contact with public officials with discretionary behaviour in administrative processes. In conclusion, the social and economic consequences of corruption adversely affect the development of countries. On the one hand, they generate losses in productive growth as a result of the misuse of public resources or the concentration of these funds in corrupt hands. On the other hand, they produce social inequality, insofar as sectors of the population linked to the highest political spheres with access to the administration of State resources are favoured. Among the impacts of corruption on the various structures of the countries, the following stand out: Undermining investment and worsening poverty. Distortion of incentives for local or foreign private investment, which reduces economic efficiency and consequently long-term production. Over-investment by government in capital projects due to the ease of capturing revenue from public procurement and reducing the return on investment. Deterioration of the business environment in the private sector. It is preferred to invest in activities with rapid and excessive profits in a short time rather than purely productive ones. Lack of vision and innovation in the business sector. The production of companies does not depend on their competitiveness but on their ability to influence decision-makers regarding the regulation or destination of their productive activity. Development of monopolistic or oligopolistic structures in the markets, where usually the same group of companies is favoured in the allocation of contracts. Capital flight to the extent that profits from corrupt activities are deposited abroad or are associated with relaxed anti-money laundering procedures. Provision of poor infrastructure, which increases the risks of accidents and costs of wear, as well as the payment of additional taxes on citizens. Curbing innovation and creative development by unprotecting intellectual property. Companies paying bribes to maintain their competitiveness, with either tariff reduction or exemption or subsidized credits, stop investing in patents or operating permits. Social and political distortions. Societies can face a loss of values by seeing this type of activity as natural. They can also seriously affect their political systems by penetrating them in the search for accomplices. Diversion of resources. Part of public expenditure is earmarked either for the fight against corruption or for the exploitation of corrupt activities, rather than activities for more socially productive purposes such as education and health. Significant decrease in government revenue collection. The World Bank estimates that 30% to 50% of total tax revenues in developing countries are affected by corrupt practices. Impact on customs administrations in terms of trade facilitation and border protection, including the compromising of security requirements for the trafficking of illicit goods, including weapons and narcotics. High cost to society. The taxpayer who agrees to pay bribes pays for inefficiency in the provision of services, and several times for the same service. Harm to the consumer. When corruption becomes necessary to acquire a productive input or avoid minimum quality controls, markets receive goods and services in insufficient quantities of lower quality or more expensive. [1] (http://documents.worldbank.org/curated/en/986521600118147288/Executive-Summary)

Prior to COVID-19's emergency, the economic performance of Latin American and Caribbean countries showed visible signs of slowdown as a result of stagnant productivity levels, deteriorating competitiveness and an unstable international context. With the emergence of the pandemic, challenges have multiplied and the region is facing the worst crisis in its contemporary history. This is demonstrated by the figures of international organizations, which also project a recovery below the global average for 2021 and warn of the threats of a new lost decade for Latin America and the Caribbean. In their efforts to contain the immediate effects of recession, countries have combined economic and health actions using their limited available resources. However, in order to avoid the realization of its long-term consequences, it will be necessary to undertake immediately an agenda of structural reforms that are the result of new economic and social pacts. As part of these transformations, promoting the recovery of micro, small and medium-sized enterprises (MSMEs) represents a major task in rebuilding the business fabric and driving inclusive growth. These productive units are a central component in the economic and social fabric of the region. They make up the vast majority of companies, are providers of a significant portion of goods and services, generate the highest proportion of employment, and are the main source of household income. In addition, MSMEs expand the range of options for the workforce with low levels of training and fewer opportunities, becoming a mechanism to accelerate intergenerational mobility, reduce poverty, and strengthen social cohesion. In view of their relevance, smaller companies have been a clear priority in the strategy-making process to boost the region's economic performance. However, the results have not been as expected and gaps with large companies have widened as a sign that barriers limiting their birth and development remain. In this regard, emphasis should be made on three of the main challenges facing the region. The first is the growing informality that most vehemently affects the most vulnerable. Its persistence has strong social implications by restricting access to social protection systems and significant economic effects by reducing tax collection and the efficiency of productive factors. The second refers to difficulties in accessing formal sources of funding. This prevents the development of ventures with wide potential for success, hinders innovation and export decisions, and reduces opportunities for business survival during periods of crisis such as the current one. Finally, it is necessary to support the digital transformation of MSMEs as a catalyst for productivity and their insertion into value chains. The adoption of digital technologies can be especially useful in modernizing processes, expanding trade links and increasing production scales. Working on overcoming these constraints is a step in the right direction and would result in large economic and social benefits for the region. However, this will require greater collaborative work and the formulation of new arguments and recommendations that guide actions. In this regard, and in the context of these three challenges, the Permanent Secretariat of SELA undertakes the organization of this meeting with the central objective of building a roadmap to guide efforts to support MSMEs in the short and medium term, strengthening synergy and coordination among actors living in the region.

In the exercise of their public functions, state administration bodies are subject to the free competition legislation of countries. While the actions of public organizations that are expressly governed by law do not constitute an anti-competitive conduct per se, they are not exempt from legal scrutiny in situations where they exceed their powers by making decisions that may affect free competition in markets. In addition, in exercising their functions, public services have a constant and important interaction with economic operators. Therefore, many of their decisions can have an impact on competition in the markets in which those actors participate. Thus, it is vitally important to discuss the reasonableness of the elements that underpin the decisions of public organizations, as well as the potential effects that they may have on the good performance of the competitive process. Moreover, public sector bodies should ensure that their actions (rules or administrative acts) do not distort free competition in markets, thus ensuring that their decisions are based on criteria of free competition and adopting sufficient preventive measures to understand and manage the risks of free competition in the public sector. Accordingly, the need arises for the Latin American and Caribbean Economic System (SELA) and the Free Competition Program of the Pontifical Catholic University of Chile to unify efforts and train public organizations whose decisions have a direct impact on markets of paramount importance to society (e.g., telecommunications, health, public infrastructure). To that end, an online training is proposed for managers of public organizations in Latin America and the Caribbean.

Note by the Permanent Secretary In accordance with paragraph 2 of article 15 of the Panama Convention, the Latin American Council has the function to elect the Permanent Secretary for a period of four years. The current Permanent Secretary, Ambassador Javier Paulinich, was elected by acclamation in June 2017 and took office on 1 August of the same year. In this regard and in accordance with the Agenda for this meeting, the Latin American Council should elect a new Permanent Secretary for the period 2021-2025 at its XIII Special Meeting, to be held face-to-face and virtually on 21 June 2021. The Permanent Secretariat is pleased to inform the Member States that, to date, only the nomination of Dr. Walter Clarems Endara Vera to the position of Permanent Secretary of SELA has been submitted by the Minister of Foreign Affairs of the Plurinational State of Bolivia, through Note VRE.DGRM-UPOI-Cs_508/2021 dated 1 June 2021. This document contains the articles of the Panama Convention concerning the election of Permanent Secretary, as well as the nomination note submitted by the Government of the Plurinational State of Bolivia of Dr. Walter Clarems Endara Vera.

Emergencies and natural disasters or from anthropic origin could provoke the interruption of public institution and society operations, demonstrating the vulnerability of government operations, provision of essential public services (water, energy, communications) and protection of population in vulnerable situations. In this context, COVID-19 pandemic reinforced the need of improving strategic and operational plans to face potential catastrophic events of this kind. In these circumstances, it is desirable that countries have public policies directed to address these adverse situations, securing the stability and continuation of public institutions and the provision of public services to affected population in vulnerable situation. Social and economic costs of damages from natural disasters are usually a heavy burden for the economy of our countries. Social and economic development of our region could be hampered because of natural disasters, especially if countries do not adopt policies to mitigate their negative impacts. For this reason, the concepts of Continuity of Operations and Continuity of Government are outlined as useful public policies to mitigate the effects of risk situations. The concept of Continuity of Government (COG) sets up protocols, procedures and legislation, which helps countries to secure their essential operations in circumstances of catastrophic events. On the other hand, Continuity of Operations (COOP) concept contributes to secure the functioning of public institutions and society before a crisis situation or facilitates the immediate restoration of substantial activities. Experience shows that in the region of Latin American and Caribbean it is required to strengthen the protocols, procedures and legislation to secure the Continuity of Government in case of breakup of the command chain and governance, and the provision of essential public services. It is equally important to keep the cooperation and coordination among local institutions inside the country, and with neighbouring countries at the outside, in order to maintain the operation of governmental institutions, the support to private sector institutions, and the provision of public services to their citizens, especially health services. Continuity of the Government concept emphasizes the importance of readiness and response before disasters, as rescue and salvage operations, and medical care of victims. At the same time, It is stressed the need of restoration of crucial and essential public services and the maintaining of public safety and order, for which it is decisive to have a basic level of continuity of operations and institutionality that allows the functioning of public and private organizations, in order to avoid the collapse of the State and its public institutions and to ensure that private sector can support and complement recovery actions. These scenarios will demand the existence of protocols to make sure that officials and authorities are capable to assume their roles during the emergency and could anticipate alternative posts, endowment of equipment, and fast access to required communications and technology and the protection of vital governmental information. Readiness of social protection institutions, and social security institutions too, before catastrophic situations, is imperative to guarantee a basic level of protection and welfare among the population. For this reason, plans and protocols of COG and COOP must include the social services and benefits institutions, in order to boost a fast economic and social recovery of a country affected by natural disasters. The response to situations of emergency and disaster must be comprehensive. The process of planning, strategy and assistance requires strategies that facilitate and secure the operative and institutional continuity of social actors and institutions, in order to deal address the risks. These elements are expressed in protocols or operation plans.  Elaboration of Protocols ensured that institutions are in capacity to identify their critical functions and essential tasks; that authorities and officials are capable to assume their roles during the emergency, and they know their interdependence with other organizations, especially from the private sector; and to define which positions will assume the authority delegated by the institution´s leadership, in order to address specific tasks. Planning process ensures the functionality of a country, protects their economic stability and provides a comprehensive public safety level to the population. On the other hand, social protection tries to guarantee that population is able to satisfy its basic needs, through financial resources or specific services. The essential purpose of any social protection institution is to protect the population and to make secured and resilient communities, capable of deal, operate and recover from adverse situation, for which it is imperative the readiness of this key sector. In conclusion, governmental institutions must maintain their response capacity before catastrophic situations. For this reason, it is imperative to establish public policies which include advance foresight and the reduction of elements of surprise on unfavourable incidents, mainly in social security and protection, which is closely linked to governments but to the private sectors too. The institutions will be better prepared to deal with disaster situations if they already count with programs and protocols.

More than a hundred years since the first breakthroughs in plastics, these have become ubiquitous in our lives: Plastic pens and scissors with plastic handles come in plastic blister packs, which we take home in plastic bags, and there we place them next to a computer and a cell phone, whose plastic cover encases a plastic circuit board. In much of our planet today, it can be hard to look in any direction without finding anything made of plastic. This material is extremely useful; it is also, unfortunately, greatly hazardous to our health, our livelihoods, our food system, and our natural environment, and increasingly so, as a century of waste accumulates in our landfills, oceans and streets. New research by UNCTAD has helped us understand the scale of the issue at hand: More than 336 million tons of plastics were traded in 2018 alone, representing about $1 trillion, a significant 5 percent of world trade. A key problem is that about 75 percent of all plastic produced in history has become waste,[1] showing the low waste disposal and recycling capacity of most countries.[2] Furthermore, unless this is halted, plastics production is expected to quadruple in the next thirty years, largely due to industry growth in Africa, the Middle East and developing Asia. These problems particularly affect coastal areas, due to their dependence on sectors such as tourism and fishing—sectors especially hurt by plastic bottles washing up on idyllic shores, by plastic bags and abandoned fishing nets choking valuable fish and reducing marine biodiversity, and by microplastics inserting toxins into the marine (and even terrestrial) food system. Island and coastal countries are especially vulnerable to these dangers due to, among other reasons, limited space to dispose of waste. However, there is an opportunity for the countries in the region, by reducing dependence on plastics and developing emerging industries of alternatives to plastics, to protect themselves from these environmental hazards to which they are especially vulnerable, to protect their main sources of livelihood, and to create useful employment and economic development. Some alternatives may provide accessible opportunities for the sustainable development of Latin American and Caribbean nations. These include glass, ceramics, natural fibres (coconut, palm), pulp (paper, cardboard), and even organic waste such as bagasse and corn husks. Furthermore, new alternatives are constantly under development, and may provide the region with the opportunity to enter the production of entirely new materials based on pre-existing raw materials. These alternatives may not develop unless political leadership is exercised towards this end. The successful development of industries to produce alternatives to plastics (whether raw materials or finished products) would benefit from consistent trade policies, industrial circularity, effective waste management policies, and incentives for the production of sustainable substitutes. Coordination of private enterprise, civil society and all levels of government, as well as global coordination, is necessary if the nations of the region expect to join the market for alternatives to plastics. Aware of the dangers faced and the opportunities available, some nations in the region have already implemented measures that contribute to the transition of their economies towards alternatives to plastics. For example: Barbados banned certain single-use plastic objects, including containers, cutlery and straws, as well as some types of plastic bags; Belize issued regulations concerning plastic bags, straws, and containers made from expanded polystyrene; Guyana banned the import and use of expanded polystyrene objects. Such measures help create conditions where the development of alternatives becomes necessary, thus driving economic activity towards the search for and development of substitutes. Those nations that choose this path might discover that, by joining the global movement towards a circular economy early, they will find an opportunity for their prosperity and wellbeing. [1] United Nations (2019). Advancing Sustainable Development Goal 14: Sustainable fish, seafood value chains, trade and climate. See: https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2576 

Digital technologies have transformed the economic and social life of humanity. Business models, labour markets, the media and government action have undergone drastic changes driven by advances in digitization, to such an extent that quality access to connectivity networks is decisive to secure the most essential services and enjoy the benefits of the development process. These technologies have enormous potential to foster greater social inclusion and drive economic growth. Their widespread use, especially the mass access to the Internet, has been an enabling factor for the emergence of new productive sectors, the significant reduction in transaction costs and the creation of conditions for greater citizen participation in its relationship with the State. With the emergence of the COVID-19 pandemic, their benefits have been even more evident, facilitating capacity building to reduce the spread of the virus and contain its economic and social costs. However, despite all advances in access and quality of connectivity, the current juncture has also exposed the huge digital gaps that prevent a significant portion of the world population from inserting into the new normality of telework and tele-education. World Bank figures show that only 40% of the global population has access to the Internet, just 20% have high-speed broadband connection and just over 27% do not have a cell phone. The picture is even less encouraging for lower-income households, where more than 71% lack access to the Internet and 21% do not have access to a mobile phone. In the context of Latin America and the Caribbean, CAF statistics (2020) show that 32% of the population does not have access to the Internet. In this connection, ECLAC figures report greater impact in rural areas, where 77% of households are offline, while in urban areas this proportion is reduced to 23%. In addition, IICA, IDB and Microsoft (2020) point out that only half of countries in the region have a digitization agenda and 67% of schools do not have sufficient connection speed. Based on this pattern of access to digitization, the effects of technology on productivity, on the generation of better opportunities for overcoming poverty and on political stability have been less than expected. Gaps have eroded the digital dividends of lower-income populations located in remote areas. In the particular case of rural areas, improving access to connectivity networks can lead to significant changes in the living standards of its inhabitants, allowing progress in productivity, greater provision of social services, increases in public sector capacities, and higher quality jobs. To materialize all the benefits of digitization, the region must face a wide range of challenges, including: a) extending access to affordable and quality connecting platforms with greater deployment of infrastructure; b) updating policy frameworks to boost digital economy development; c) accelerating the implementation of digital agendas; and d) promoting training in digital skills for the intensive use of tools. The future will be more digital, even more so after the pandemic. In view of this situation, countries in the region must activate international cooperation mechanisms, regional integration and public-private collaboration as platforms for building joint strategies and learning successful practices. This meeting is a contribution in this direction.

One of the main activities of the Permanent Secretariat of the Latin American and Caribbean Economic System (SELA) is to promote the development in Latin America and the Caribbean of negotiating capacities for the governance of cyberspace. To meet this goal, it is organising, together with the European Institute for International Studies (EIIS), two training courses focused on Cyber Diplomacy and Techplomacy. This innovative proposal provided for a training programme with an informative session on Cyber Diplomacy and an approach to the relationship between diplomacy and technology, and subsequently an assessment of the application of diplomacy to the arising political and geopolitical problems with the digital technology sectors. In the first stage of the training programme, the Specialization Course on Cyber Diplomacy was held with the aim of describing the application of diplomacy to the political and geopolitical problems that have arisen in cyberspace. In the second stage, the Specialization Course on Techplomacy aims to describe the interaction between States and large companies in the technology sector and the way they change both the geopolitical and business worlds. This training will continue with the Specialization Course on Techplomacy, which is presented below.